ASX shares dropped $90 billion as oil prices rise and rate hike fears grow
Australian investors lost about $90 billion in the week ending September 11, 2026, as surging oil prices and central bank hawkishness weighed on the market.
Investors wiped approximately $90 billion off Australian shares in the week leading up to Friday, September 11, 2026. The benchmark S&P/ASX200 index closed down 0.9 percent at 8741.2 points, representing a total loss of 2.9 percent over the past seven days. A sharp rise in oil prices contributed significantly to the sell-off. Brent crude climbed to $108 per barrel, its highest level since March, following a surge of roughly 7 percent driven by ongoing tensions involving Iran and the United States.
Rising bond yields compounded the pressure as investors anticipated another interest rate increase from the Reserve Bank of Australia. Deputy governor Andrew Hauser stated that the bank would raise rates again if inflation remained stickier than expected earlier this week. Diana Mousina, deputy chief economist at AMP Capital, noted that higher-than-expected inflation data and hawkish commentary from officials made shares less attractive compared to bonds.
Mining stocks suffered heavily as copper prices fell around 5 percent after reports suggested the United States was reconsidering tariffs on refined copper. Major miners included BHP, which dropped nearly 5 percent, Rio Tinto lost 4 percent, and Fortescue Metals Group declined more than 2 percent. Sandfire Resources fell about 7 percent, while Capstone Copper nearly lost 9 percent. Gold prices also tumbled approximately 2 percent as bond yields surged, impacting miners like Northern Star Resources and Evolution Mining, which dropped around 4 percent each. Additionally, GQG Partners saw its funds under management decline by more than $1 billion following selling of shares by its leadership.
